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Domestic trade and the business environment in Uganda

This study examines the status and trends of domestic trade in Uganda. Notably, the paper explores the performance of domestic trade — its contribution to GDP, revenues and employment and critically reviews the existing institutional operating environment to support domestic trade in Uganda. We analyse the Uganda National Household Surveys and examine the existing policy environment. The results indicate that domestic trade contributes significantly to economic growth, employment creation and domestic revenues.

Relatedly, the government has established a supportive institutional environment. However, significant challenges remain, such as limited prioritisation of domestic trade in planning frameworks, inadequate funding, limited enforcement of standards and insufficient coordination of efforts by state and non-state institutions.

To foster domestic trade, the government should further capitalise the Uganda Development Corporation (UDC), increase awareness of the need for standardisation, streamline the mandates and coordinate domestic trade-related activities to overcome institutional challenges. Also, there is an urgent need to fast-track the creation of a tracking system for the digital markets—as laid out in the National Trade Policy and the National Development Plans.

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